Indiana § 23-16-7-8 - Liability upon return of contribution
Full text of Indiana Indiana Code § 23-16-7-8 — Liability upon return of contribution, with citation guidance and answers to common questions.
§ 23-16-7-8. Liability upon return of contribution
Sec. 8. (a) If a partner has received the return of any part of the partner's contribution without violation of the partnership agreement or this article, the partner is liable to the limited partnership for a period of one (1) year after receiving the return of contribution for the amount of the returned contribution, but only to the extent necessary to discharge the limited partnership's liabilities to creditors who extended credit to the limited partnership during the period the contribution was held by the partnership.
(b) If a partner has received the return of any part of the partner's contribution in violation of the partnership agreement or this article, the partner is liable to the limited partnership for a period of six (6) years after receiving the return of contribution for the amount of the contribution wrongfully returned.
(c) A partner receives a return of the partner's contribution to the extent that a distribution to the partner reduces the partner's share of the fair value of the net assets of the limited partnership below the agreed value (as stated in the records of the limited partnership) of the partner's contribution that has not been distributed to the partner.
As added by P.L.147-1988, SEC.1.
IC 23-16-8Chapter 8. Assignment of Partnership Interests
23-16-8-1Nature of partnership interest 23-16-8-2Assignment of partnership interest 23-16-8-3Rights of creditor 23-16-8-4Right of assignee to become limited partner 23-16-8-5Power of estate of deceased or incompetent partner
Source: official Indiana text · Last verified 2026-08-27
Frequently Asked Questions About Indiana § 23-16-7-8
What does Indiana Code § 23-16-7-8 cover?
Section 23-16-7-8 ("Liability upon return of contribution") is part of the Indiana Code, the codified statutory law of Indiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Indiana § 23-16-7-8?
A common citation format is "Indiana Code § 23-16-7-8" (Indiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Indiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Indiana official source linked on this page or consult a licensed Indiana attorney.
How does Indiana § 23-16-7-8 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Indiana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Indiana.